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Japanese bonds trade flat in subdued trade, no change in BoJ’s bond buying plan

The Japanese bonds traded nearly flat Tuesday as market observed little trading activity in the light of no important economic data or events. Also, the BoJ maintained bond buying programme plan unchanged.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, traded flat 0.079 percent, the yield on long-term 40-year note up 1/2 basis point to 1.10 percent and the yield on short-term 3-year traded steady at -0.111 percent by 03:50 GMT.

The Bank of Japan has maintained the target amount for its government bond buying programme at its regular market operations in August from July, the central bank's bond buying plan released on Monday showed.

The BoJ kept the amount of buying steady in its six categories based on maturities, including 350-550 billion yen in JGBs with five- to ten-years to maturity.

According to an overnight report from the Nikkei, Japan's Q2 GDP, scheduled to be released on August 14, is seen at an annualized +2.6 percent, compared to that in the previous quarter, largely owing to higher domestic demand. Further, upbeat capital investment as well as personal consumption amid recovery in corporate earnings are also expected to favor growth.

Also, Japan July Nikkei/Markit manufacturing PMI (final) came in at 52.1, tad lower than the preliminary reading of 52.2 and from 52.4 in June.

Meanwhile, Japan’s Nikkei 225 rose 0.28 percent to 19,980.20 by 04:00GMT and the FxWirePro's Hourly Yen Strength Index remained neutral at 31.08 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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